Digital banking is an extension of the transactional facility of banks through a set of secured digital channels. It is done by taking care of data security, related risk mitigation and regulatory aspects performed by the bank itself. Modern technologies such as the internet and mobile banking services adoption give banking an edge in convenience.
The up to date digital technologies such as social media, analytics, and payment solutions are essential in aiming towards providing the customers the comfort and top of the line services where digital banking is achieved. But there is more to digital banking than its constructive definition.
What Is It All About?
According to Stanley Epstein, director of Citadel Advantage Ltd, digital banking is the application of technology that ensures a seamless end to end processing of banking transactions or operations. It is initiated by the client, guaranteeing maximum utility to its terms of availability, usefulness, and cost. It’s a vital part of the bank concerning reduced operating costs with zero errors and enhanced services.
More than two decades ago, banks were following a physical bank branch network system, which was a costly and high maintenance method of banking. However, after the adoption of mobile banking in recent years, the cost to income ratio of most banks increased at around 45% to 55%. Though the ratio is significant, it is proven to be a lot better than the traditional method.
Digital banking allows its client the luxury of banking anytime and anywhere. All throughout the year, the features offered in digital banking are available unless maintenance is required. On the clients personal banking page he or she can see the real-time summary of his or her accounts and can do any transaction with just a click. Although not all features of a traditional banking method are available in digital banking, most of the essential operations are possible online – like paying bills, flight reservations, checking of accounts, fund transfers, and so on. The convenience lies in that you actually don’t go to a physical bank. Not only does digital banking help its clients through their daily financial transactions, but it also helps the environment through saving a lot of paper in the process.
How Technology Affects Banking
Technology has brought a new revolution of innovative solutions primarily in the financial industry. An established traditional banking structure is now moving conveniently in its system. One of the most significant focuses of larger banks is automation where fast transaction and real-time results are highly attainable. It has become a more comfortable solution than traditional banking arrangements.
Banks today come up with a lot of user-friendly applications to aid their customers. A lot of businesses also thrive in the technology of digital banking including companies like Amazon and eBay. Through digital banking, customers can pay their online orders in real time without the hassle of going to the physical store. Also, these businesses can manage their accounts efficiently through digital banking by accessing bank activities such as their bank checks, deposits, wire funds and more.
Transferring money has never been this convenient. The utmost important aspect of every customer and business is time, and that necessity gets highly valued by digital banking. Business owners and financial employment activities are made more accessible. And some transfers can be automated, which in return saves time for both the company and its employees.
Through digital banking, traveling, entertainment, food trips, health, and even shopping have become more efficient, timesaving and hassle-free. But it doesn’t stop there. Digital banking has a wide array of future potential. Digital banking has changed the banking world for good and has become the face of advanced technology.